Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2019-2020
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
Public Governance, Performance and Accountability Amendment (Sustainable
Procurement Principles) Bill 2020
EXPLANATORY MEMORANDUM
and
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Circulated by authority of
Andrew Wilkie MP
Public Governance, Performance and Accountability Amendment (Sustainable
Procurement Principles) Bill 2020
OUTLINE
This bill seeks to enshrine principles of sustainability in Federal Government procurement
decisions. The bill amends the Public Governance, Performance and Accountability Act
2013, creating a duty for the accountable authority of a Commonwealth entity to procure
recycled goods. The authority must ensure that at least 30% of the entity's procurement of
goods is of recycled goods. For example, recycled plastics can be used in furniture,
recycled paper in office supplies and recycled rubber and glass in infrastructure. This
reduces the need for new materials and creates an internal market for Australian waste
resources.
The bill also introduces mandatory sustainable procurement principles which must be
taken into account in making purchasing decisions. Goods and property which can be
reused, repaired or recycled should be considered, and goods which themselves contain
recycled material should be given preference. Environmental impacts and fair and ethical
sourcing practices must also be considered by the decision maker. This means goods and
services which have lower adverse environmental impacts across their entire lifespan and
socially responsible supply chains will be given preference.
In light of the waste export ban in Australia, this bill capitalises on the Government's
purchasing power to drive the shift to a circular economy and new market for sustainable
products. The influential purchasing power of the Government will encourage greater
certainty in the remanufacturing market and drive demand for recovered resources.
FINANCIAL IMPACT
The bill will have no financial impact.
NOTES ON CLAUSES
Clause 1: Short Title
1. This clause is a formal provision and specifies the short title of the Bill as the Public
Governance, Performance and Accountability Amendment (Sustainable
Procurement Principles) Bill 2020.
Clause 2: Commencement
2. This clause provides for the commencement of the Act on the day after it receives
Royal Assent.
Clause 3: Schedules
3. This clause establishes that, as the intent of the Bill is to be realised through
amendments to another Act, the Schedules of this Bill will amend that Act
accordingly.
Schedule 1
Public Governance, Performance and Accountability Act 2013
Item 1: Section 8
1. Item 1 inserts the term sustainable procurement principles into the Dictionary. The
term is defined in subsection 105B(1A) to mean:
a. Goods or property that can be reused, repaired or recycled;
b. Goods that include recycled material;
c. Goods or services which have lower adverse environmental impacts
associated with all stages of production, use or disposal;
d. Suppliers of goods and services which have fair and ethical supply chains,
and which comply with social and legislative obligations (including obligations
to employees).
2. The sustainable procurement principles mandate that, at minimum, the procurement
decisions which prioritise the above attributes should be given preference.
Item 2: At the end of Subdivision A of Division 2 of Part 2-2
3. Item 2 inserts a new provision containing a duty to ensure procurement of recycled
goods. This new duty ensures that the accountable authority of a Commonwealth
entity must consider sustainable procurement principles when making procurement
and purchasing decisions.
4. The entity also has a duty to ensure that at least 30% of the entity's procurement of
goods is of recycled goods.
5. This duty will come into effect on 1 July 2025.
Item 3: After subsection 105B(1)
6. Item 3 inserts a mandatory requirement for the Minister to consider the sustainable
procurement principles when drafting new procurement instruments. The Minister
must be satisfied that the new procurement instrument is consistent with the
sustainable procurement principles.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Public Governance, Performance and Accountability Amendment (Sustainable Procurement
Principles) Bill 2020
This bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.
Overview of the bill
This bill seeks to enshrine principles of sustainability in Federal Government procurement
decisions. The bill amends the Public Governance, Performance and Accountability Act
2013, creating a duty for the accountable authority of a Commonwealth entity to procure
recycled goods. The authority must ensure that at least 30% of the entity's procurement of
goods is of recycled goods. The bill also introduces mandatory sustainable procurement
principles which must be taken into account in making purchasing decisions. Goods and
property which can be reused, repaired or recycled should be considered, and goods
which themselves contain recycled material should be given preference. Environmental
impacts and fair and ethical sourcing practices must also be considered by the decision
maker.
Human rights implications
This bill does not engage any of the applicable rights or freedoms.
Conclusion
This bill is compatible with human rights because it does not raise any human rights
issues.
Andrew Wilkie MP